Prosecutors in Osaka have indicted the former head of a school operator and his wife on fraud charges. The couple is at the center of a controversial deal to acquire state land.

Yasunori Kagoike, former president of the Moritomo Gakuen school corporation and his wife, Junko, are charged with defrauding the central government of subsidies related to the construction of a school in Osaka Prefecture.

Prosecutors say the couple presented the government inflated construction costs to obtain higher subsidies. The couple reportedly remained silent during questioning.

Prosecutors served fresh arrest warrants for the couple on Monday, for allegedly fraudulently obtaining subsides of around 840,000 dollars from the Osaka prefectural government.

They are suspected of padding the number of students with disabilities, as well as teachers at a kindergarten operated by Moritomo Gakuen in the prefecture.

Source: ANNnewsCH